Delta to start adding fuel surcharges up to $50 for frequent-flier tickets

Sunday

Jun 29, 2008 at 6:00 AM

BLOOMBERG NEWS

Delta Air Lines Inc. will add fuel surcharges of as much as $50 for frequent-flier tickets and US Airways Group Inc. will pare curbside baggage check-in, widening an industrywide hunt for new revenue and savings as costs soar.

Delta will charge $25 to redeem award tickets for U.S. and Canada travel, and $50 for international flights. US Airways will end curb service at 34 airports including New York’s Kennedy as it begins a $15 fee for the first checked bag.

U.S. airlines are trying to stem 2008 losses that the Air Transport Association trade group says may reach a record $13 billion. A 91 percent surge in jet fuel in the past year has spurred large carriers to announce almost 12,000 job cuts and the grounding of more than 400 jets.

“Every single dollar is important to them,” said Randy Petersen, founder of WebFlyer.com, a site that tracks and analyzes reward programs. “All these new fees, all these cuts in service, it’s still not enough. There will be more.”

The frequent-flier fuel surcharge at Delta, the third-largest U.S. airline, will take effect Aug. 15.

Also in August, US Airways will add a $25 processing fee on frequent-flier tickets in the U.S. and Canada, $35 to Mexico and the Caribbean, and $50 to Hawaii and international destinations. AMR Corp.’s American Airlines charges a $5 processing fee for award tickets, or $20 if they are booked by phone.